These two sections are separate and independent of each other. Although they are required to be included on the same Word document, do not integrate these two sections together.

Section 1 Application is an essay while Section 2 Comprehensive contains terms which you are required to define, discuss and provide examples for. The terms have nothing to do with the essay! Total of 80 points for the entire assignment

Section 1 Application - 48 points total (500 words minimum; this does not include title information, references, or an abstract!)

Addressing the following:

Using the concepts of absolute and comparative advantage answer the questions:

- Why does the U.S. trade goods with other countries that they can produce themselves?

- Wouldn't the U.S. be better off producing the goods themselves?

- In your opinion, has the U.S. outsourced too much? Explain why you believe that the U.S. has or has not outsourced too much keeping in mind the reasons why corporations outsource, and the benefits derived from this strategy.

Please review the following resources when forming your opinion; you are free to do as much research as you want however your opinion should be based on data and not assumptions! For example, just because your cousin lost his job because it was sent overseas doesn't necessarily mean that there was an overall negative economic impact!

A trade war could kill millions of U.S. jobs Retrieved from https://www.washingtonpost.com/news/wonk/wp/2016/03/25/donald-trumps-trade-war-could-kill-millions-of-u-s-jobs/

This is not a political commentary but rather a lesson on what economists feel might happen to the U.S. economy if the U.S. attempted to reduce the amount of imported product from its trading partners.

Economics of Outsourcing Policy http://www.plu.edu/~econ331/home.html

The Case for Outsourcing Jobs http://money.cnn.com/2012/09/14/news/economy/outsourcing-jobs/index.html

Outsourcing for Dummies (and the Willfully Ignorant) http://www.forbes.com/sites/danikenson/2012/07/11/outsourcing-for-dummies-including-the-willfully-ignorant/#39516eaa6821

U.S. Trade: Exports and Imports Decline Sharply in January 2009

http://www.calculatedriskblog.com/2009/03/us-trade-exports-and-imports-decline.html

Please take a look at how import and exports mirror each other

Section 2 Comprehension - 32 points total (4+4 points for each term)

Define and explain each of the terms and provide an example of each using a minimum of 50 words

Description of term (in your own words)

Integration of example (50 words minimum for each term)

1) Law of Diminishing Returns

2) Total Cost

3) Marginal Cost

4) Economies of Scale

Word count minimums do NOT include rewriting the questions or your references or title information!

All written assignments are required to be submitted as a SINGLE Word Document! BOTH sections MUST be included on one document. I will only be grading one submission. If you provide two separate documents, only the first one will be graded! I also won't accept emailed assignments or assignments posted in any other form!